9/26/2014

Mrunal Current Diplomacy: Nalanda University,

- Mrunal - http://mrunal.org -

[Current] IR-Diplomacy SepW1: Defense FDI reforms,

procurement; Nalanda University, APF Human rights
summit, PTA with Nepal
1.
2.
3.
4.
5.
6.
7.
8.

D1: Defense FDI reformed

D2: Defense Procurement:
D3: India-Nepal agreements during Modi visit
D4: Power Trade agreement (PTA) with Nepal
D5: Nalanda University
D6: APF: Human rights conference 2014
D7: Border security Management: Gujarat
D8: Letting states have foreign relations

D1: Defense FDI reformed

Old policy
FDI

FII

New policy

26%

49% govt. approval

Above 49% also allowed, if access to
modern and state of art technology

banned

24% automatic approval

Allowed FPI, FII, QFI, NRI, foreign
venture capital investment.
Only 24% because hot money and
sometimes hard to trace real owners.

Single Indian resident to

have 51% share
Three years lock-in
Duration period on foreign
investor.
JV

NO such requirement
No such requirement.

Who approves what?

Investment limit
Approving agency
Upto 1200 crore FIPB
>1200 crore
CCEA
>49% FDI
CCS (cabinet committee on security)
Challenges in Defence FDI
http://mrunal.org/2014/09/current-diplomacy-sepw1-defense-procurement-fdi-reforms-nalanda-university-nepal-power-pact.html/print/

1/6

9/26/2014

Mrunal Current Diplomacy: Nalanda University,

1. 49% FDI means the foeigner still cant get management control of the Joint
ventures with Indian companies.
2. Hence theyll be hesitant in transferring the proprietary technology to India.
3. This was the same reason why old policy did not attract large investmnt.
4. Secondly, Government has yet to notify what constitutes modern and state of
art technology, (because there more than 49% FDI permitted, and foreign
companies may get attract to invest and transfer secret technology.)

D2: Defense Procurement:

Defense Acquisition Council (DAC) is chaired by Defense Minister.
This DAC cleared following proposals (in August 2014):
1. Stopped the tender process to import helicopters for army. (perhaps dont
want to burn hands again like UPA did with AgustaWestland)
2. Instead, Government will now buy 400 desi helicopters from Hindustan
Aeronautics Ltd. for moving men and material in border region.
3. Will induct 118 new (Desi) Arjun tanks.
4. Will produce Self Propelled (SP) guns to mount on Arjun tank- this will give
us advantage in swift desert battles in Rajasthan and Western Border.
5. Will upgrade six submarines.

D3: India-Nepal agreements during Modi visit

Happened in August 2014. Just a brief outline here:
India Nepal Agreements during Modi visit:
Infra

HIT Highways, Information ways, Transways.

Modi promised them $1 billion loan for infrastructure and
energy projects

Border

Will form Boundary working group to construct boundary

pillars.
Joint commission on border issues

Energy

Raxaul-Amlekhgunj petroleum pipeline

Hydel projects- Upper Karnali (Nepal and GMR), Arun III, Upper
Marsyangdi and Tamakoshi III

Transport

Cross border railways at 5 border points, 4 integrated check

posts
Bridges over Mahakali river at Mahendra nagar
India to allow 3 additional air entries Janakpur, Bhairahawa,
Nepalgunj

http://mrunal.org/2014/09/current-diplomacy-sepw1-defense-procurement-fdi-reforms-nalanda-university-nepal-power-pact.html/print/

2/6

9/26/2014

Mrunal Current Diplomacy: Nalanda University,

3 MoU

Pancheshwar Developmental Authority

Tourism in Nepal
Doordarshan and Nepal TV

Trade

India will remove quantitative restrictions on Nepalese products.

Misc.

Grant to provide iodized salt to Nepalis.

Donated 2500 kgs of Sandlewood to Pashupatinath temple.

D4: Power Trade agreement (PTA) with Nepal

Happened in September 2014, after Modi came back.
Now any Nepali public or private entity can sell electricity to India.
India wanted to setup a joint venture Company with Nepal- for trading
electricity. But Nepali Government did not agree.
India even offered to help developing Nepals hydro-electricity power but
their political factions disagreed.
Modi has earlier said- Nepal has immense hydropower and just be selling
electricity to India, they can become a developed country(!)
Includes
electricity power trade, cross-border transmission,
inter-connection and grid-connectivity

Doesnt
Indian investment in
Nepali power sector.

Dont confuse
Power trade agreement
Power Development pact
Between GMR India with Nepali
Between respective Governments of
Government to develop Karnali
Nepal and India
hydropower.
Signed with consensus of Maoists and Nepali maoists dont like this, not one bit
other political factions of Nepal.
so theyve began protests.

D5: Nalanda University

Nalanda: Ancient times

During the rule of Kumargupta of Gupta dynasty.
Mahayana monks Asnaga and Vasubandhu said to have found Nalanda in 400500AD
Chinese pilgrim Hiuen Tsang, came during Harshas reign, gave detail account
of Nalanda University.
Nalanda was a huge monastic-educational establishment.
Teaching done in Sanskrit.
Primary teaching focus: Mahayana Buddhism, yet included other
http://mrunal.org/2014/09/current-diplomacy-sepw1-defense-procurement-fdi-reforms-nalanda-university-nepal-power-pact.html/print/

3/6

9/26/2014

Mrunal Current Diplomacy: Nalanda University,

secular subjects as well- Like, Grammar, logic, epistemology and

sciences.
Active discussions and debates were taking place.
Harsha is said to have invited a thousand learned monks of Nalanda to
take part in the philosophical assembly at Kanauj.
Another Chinese scholar, Itsing, mentioned that Nalanda housed 2,000
students, was funded by revenues of 200 villages.
Thus university continued to be the centre of intellectual activity till the 12th
century
1193 AD: Turkish ruler Qutbuddin Aibaks general Bakhtiyar Khilji destroyed
Nalanda University.

Nalanda: Modern times

2006: President Kalam proposed setting up this university as an international
learning institute, a link between the past, present and future, a channel for
knowledge exchange between scholars of the world
Singapore, China, Thailand and Australia have contributed funds.
university came into existence by a special act The Nalanda University Act
2012: Noble Laureate Amartya Sen was appointed the Chancellor
Total 7 schools- including ecology, environment and historical studies.
2020: will become fully operational, with campus in Rajgir foothills.
Until then, temporary classes at Rajgir convention hall, students will live in a
hotel.
Foreign minister Sushma Swaraj inaugurated in 2014, September.
University aims to become a research university, not a teaching university.

D6: APF: Human rights conference 2014

1991: UNs Paris principles- to establish norms for various human rights
bodies across world.
Later, an International coordination Committee of National Human Rights
Institutions setup.
This Committee has 4 regional networks, one of them is Asia Pacific forum
(APF) with 21 member-nations.
2014, Sep: Indias national human rights commission headed the conference
of this body, at New Delhi.

Outcomes of this Human rights conference

1. Until now NHRCs have focused on human rights violations by state actors
2. But, economic scenario has changed, weve to focus on human rights
violations by companies- pollution, tribal-displacement, sweatshops, labour
exploitation and negative-externalities created by MNCs.
3. For Prevention of Torture , well create a working group including the NGOs.
4. Members agreed to use a five-pronged strategy to protect human rights from
2015 to 2020: Gender equality, peace , security, Business, Vulnerable
groups-children, women, the disabled, the elderly and displaced persons.
http://mrunal.org/2014/09/current-diplomacy-sepw1-defense-procurement-fdi-reforms-nalanda-university-nepal-power-pact.html/print/

4/6

9/26/2014

Mrunal Current Diplomacy: Nalanda University,

D7: Border security Management: Gujarat

Following reforms taken: (aka fodder for GS3)
1. Men from Puggie community are expert in reading camel footprints. They
belong to Kutch and Banaskantha districts of Gujarat.
2. Theyve been recruited to trace the movement of smugglers, terrorists and
refugees across western border through desert.
3. Police has enrolled more friends of police in border villages- to act as
informants.
4. For coastal security the security forces are keeping surveillance on fishercommunities including Hindus- because some of them were caught by Pakis,
brainwashed and then released back to India- they supply sensitive information
to Pakis in lure of money.
5. Stringent identity verification of fishermen and those returning from Dubai
and Karanchi via sea route.
6. Intelligence agencies keep a tab on terror website, online groups, people
returning from specific countries and dollar transactions. Because dollar
transactions give footprints of any terror activity.

D8: Letting states have foreign relations

1. After LPG reforms the CMs of Andhra Pradesh and Karnataka actively sought
out FDI from MNCs. As as result, Hyderabad and Banglore have developed as
IT hubs.
2. On similar lines, the then Chief Minister Modi began hosting Vibrant Gujarat
summits to attract investment in his state.
3. Therefore, all state Government should actively seekout FDI and establish
direct-relations with foreign Governments- many American states do the
same- they setup standalone offices in foreign nations to boost trade-tourism
to their home state.
4. Since 80s- Even the authoritarian Chinese leadership has permitted their
provinces to establish sub-regional links with other Asian countries. As a
result, Yunan is thriving as a trade hub.
Challenges?
1. Border states- what if Pakistan wanted to invest in Punjab or China in
Arunanchal or Bangladesh in W.Bengal? Even if they wanted purely economic
relations, the security aspects will overshadow and the Union Government
may not allow the deals.
2. While Madhya Pradesh, Gujarat, Maharashtra and other big states can afford
to host investors summits, the interior and backward states cant host such
lavish events -given the lack of event managers, rail-road-air connectivity,
media publicity etc. Union Government needs to help them.

Published on 24/09/2014 @ 8:48 pm under Category: Current Affairs Weekly

http://mrunal.org/2014/09/current-diplomacy-sepw1-defense-procurement-fdi-reforms-nalanda-university-nepal-power-pact.html/print/

5/6

9/26/2014

Mrunal Current Diplomacy: Nalanda University,

URL to article: http://mrunal.org/2014/09/current-diplomacy-sepw1-defenseprocurement-fdi-reforms-nalanda-university-nepal-power-pact.html

http://mrunal.org/2014/09/current-diplomacy-sepw1-defense-procurement-fdi-reforms-nalanda-university-nepal-power-pact.html/print/

6/6